Budgeting Methods

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The 50/30/20 Rule

Segregate your needs, wants and saving

50% of the after-tax income goes into “needs”, 30% into “wants”, and 20% into saving

Zero Budgeting

Give a purpose to every cent you earn

Income minus expenses must be equal to zero

Categorise your expenses and allocate money

Pay-Yourself-First Budgeting

Savings first, and then the rest

Set aside money for your financial objective

Needn't track every cent that you own

Values-Based Budgeting

Spend your money on what you “value” in life

Cut down on what you “don’t value” in life

Cash Envelope Budgeting

Keep portions of money for every sort of expenses

Makes it easier to track how you spend money